Charoen Pokphand: Thailand's Largest Agribusiness Conglomerate
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Case Code: BSTR109 Case Length: 18 Pages Period: 1921 - 2004 Pub Date: 2004 Teaching Note: Not Available |
Price: Rs.500 Organization: Charoen Pokphand Group Industry: Agriculture Countries : Thailand Themes: Business Environment |
Abstract Case Intro 1 Case Intro 2 Excerpts
Background Note
Charoen Pokphand Group ('Charoen Pokphand' in the Thai language means 'commodity development') was founded as the Chia Tai seed shop in 1921. The founders were two brothers of Chinese ethnicity, Ek Chor (who took on a Thai name 'Chearavanont') and Siew Whooy. The brothers sold seeds and vegetables imported from China. Due to the duo's strong focus on quality, the seed shop became very successful. In 1951, the brothers and their families (the Chearavanont family) decided to expand their business. CP's expansion plans were based on its fundamental three-benefit philosophy 'to benefit the nation, benefit people and benefit the company.' The family decided on vertical integration as the mode of growth and established the Charoen Pokphand Feedmill - the first vertically integrated business of CP. In the next few decades, the company expanded into poultry, swine and duck breeding, and processed food products such as processed meat and chicken products, for national and international markets. Vertical integration was highly developed at CP - reportedly, nothing went waste at the group companies...
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